You have it in reverse.
Hardware limiters may sound better but they are inferior to vst limiters when it comes to suppressing peaks, especially while mastering, due to the fact that their ceilings are prone to vary over time. Anybody that masters with hardware limiters feeds into a digital limiter to ensure no clipping occurs on export.
Latency is a good thing when suppressing peaks because the plugin has more time to calculate the best way to tackle the peak while with hardware, the audio has passed by. Some vst limiters even have an additional latency parameter called "look-ahead" (eg. Fabfilter Pro-L).
A good example of how latency improves response is with live tv broadcasting, where the feed is delayed 5-10 seconds so they can accurately decide whether or not to censor something.